U.S. Lifts Chip Design Software Export Ban on China Amid Trade Negotiation Progress

The U.S. government has lifted its restrictions on exporting chip design software to China, allowing Synopsys, Cadence, and Siemens EDA to resume operations. The move comes as Washington and Beijing signal progress in trade talks.

U.S. Officially Eases Tech Export Controls to China

On July 3, semiconductor software giants Synopsys and Cadence confirmed that the U.S. government has lifted its export restrictions on advanced chip design software to China.

Synopsys, based in California, announced it is working to restore access to its previously restricted products in China. Cadence echoed the statement, noting it is resuming service to affected customers in accordance with U.S. export laws.

Siemens EDA Also Cleared to Resume China Operations

In addition to Synopsys and Cadence, Siemens EDA—the U.S.-based subsidiary of Germany’s Siemens—has reportedly received similar approval to resume its semiconductor software business in China.

Previously, on May 23, the U.S. Department of Commerce's Bureau of Industry and Security had instructed EDA (Electronic Design Automation) companies to seek export licenses for technologies like design software and semiconductor chemicals before shipping them to China.

Stocks Surge Following Policy Reversal

News of the lifted restrictions triggered strong market reactions. In after-hours trading on Robinhood, Synopsys shares jumped over 6%, while Cadence rose more than 7%, reflecting investor optimism over the re-opened access to the Chinese market—one of the world’s largest for chip design tools.

U.S. EDA Firms Dominate the Global Market

According to market research firm TrendForce, Synopsys, Cadence, and Siemens EDA collectively held 74% of the global EDA market in 2024, underscoring the U.S. dominance in this critical semiconductor design sector.

Synopsys: 31%

Cadence: 30%

Siemens EDA: 13%

EDA software and services are essential tools in the development of advanced semiconductor devices used in everything from smartphones to AI systems and military hardware.

Policy Shift Tied to Improving U.S.-China Trade Relations

The policy reversal comes shortly after China signaled progress in ongoing trade negotiations with the United States. Last week, Beijing confirmed conditional agreements to resume limited exchanges involving rare earth materials and advanced technologies.

Analysts suggest the move could be part of a broader strategy by Washington to stabilize economic relations and de-escalate technology tensions with China, which have intensified over the past few years.

Conclusion

The U.S. decision to lift export restrictions on chip design software marks a significant shift in technology trade policy. For companies like Synopsys, Cadence, and Siemens EDA, the move opens the door to renewed revenue streams in China.

More broadly, it signals a possible thaw in U.S.-China tech relations, offering hope that future cooperation—or at least managed competition—may be possible in the world’s most strategically important industry: semiconductors.